Sept 18 Reuters Rogers Communications said it would buy Bell39;s stake in Maple Leaf Sports Entertainment for C4.7 billion 3.46 billion to become the majority owner of the Canadian sports firm behind the Toronto Raptors basketball team and NHL39;s Toronto Maple Leafs.
With the purchase of Bell39;s 37.5 stake, Rogers will double its ownership in the company and take control of some of the most widely followed sports teams in Canada. Rogers already owns the Toronto Blue Jays of Major League Baseball.
For Bell, the deal could aid a restructuring sparked by a decline in its legacy phone and news business. The company39;s shares were up more than 4 on Wednesday.
Rogers and Bell jointly bought a majority stake in MLSE in 2012, drawn by its prized collection of sports assets including the Toronto FC soccer team and Ontario39;s Scotiabank Arena.
Since then, interest in sports investments has boomed with investment firms and billionaires snapping up top teams to capitalize on lucrative broadcast deals and loyal fan bases.
MLSE continues to appreciate significantly, Rogers CEO Tony Staffieri said, adding that the agreement also ensures longterm Canadian ownership and investment of these iconic teams.
Sports broadcasting has been a bright spot for Rogers amid a broader decline in cable TV demand. Its media sales grew 7 in the June quarter due to higher sportsrelated revenue.
It39;s a rich price and presumably, they Rogers would look to leverage that ownership into…